The stock market is going through a historical cycle right now, and most investors aren’t aware of it, given the composition and weighting of the broader S&P 500 and Nasdaq-100 indexes. Considering that these indexes hold mostly stocks inside the technology sector, a concentration of stocks and industries might impact the way investors measure the true performance of financial markets at the moment.
With this in mind, there is one significant indicator, a spread, that typically signals where the markets might swing next in the coming months. This spread can be taken out of the difference between the iShares S&P 500 Value ETF (NYSEARCA: IVE), which represents value stocks, and the iShares S&P 500 Growth ETF (NYSEARCA: IVW), which represents growth stocks overall.
